The Governments focus on reducing pollution and providing a clean air environment through tighter emission norms (with the implementation of Bharat Stage-VI from April 1, 2020) and encouraging electrification (FAME 2 Policy) is certainly the way forward as it would also pave the way to have a positive impact on our biggest payout in oil.I have tried to capture my perception on how each of the business segments would evolve, the kind of challenges the industry will face and how the Read more..

The automobile business is highly capital intensive and constantly requires huge doses of funds by way of Working Capital, Term Loans and Trade advances to keep the daily transactions up and running. Dealers across India have working capital or inventory funding limits from different banks. On a rough estimate these limits may be in the tune of Rs 15,000 crore. A back of the envelope calculation suggests they pay around Rs 1500 crore (approx) as interest to the banks, every year. Its important Read more..

When we eject out of the novel coronavirus crisis, we will enter into a completely different world. A modification that will be democratic and universal. It will impact the world powers, human behaviour, businesses and preferences for technology in a striking means. And one of the few winners of this crisis would be the digital world, even as the role of human efforts and involvement will go down further. If we infer the man versus machines narrative, ostensibly the latter emerges as a winner Read more..

The Indian Truck industry has, for nearly seven decades, carried the tag of being regressive, providing a less-than-safe, environmentally unfriendly, underpowered vintage class of trucks and buses. This class of vehicles has lacked consciousness for its real heroes-the drivers towards safety, comfort and convenience. Seldom has the industry evoked any positive sentiments much unlike our role models, the originators in Europe. However, this image is set for a complete overhaul. The first Read more..

With the BS-VI transition, the growth of the Indian automobile industry is likely to be flat next year as well. In my opinion, the slowdown is bound to continue for another 18 months.Today, the entry of foreign players has impacted the auto sector. But neither Kia Motors nor the MG Motors have created any new market in India, they have rather taken away the market share of the existing players. So it has impacted the current dealerships in a way that they are cutting the market shares of Read more..

Indias auto industry is in urgent need of a jump start. The sector accounts for half of Indias manufacturing GDP and employs as many as 37 million people, ranging from people who make cars to truckers who get them to ports. However, according to the industry body SIAM (Society of Indian Automobile Manufacturers), little has gone right for the industry in the past couple of years.The auto industry needs more rational taxes to incentivise consumption and the government needs to significantly Read more..

This upcoming union budget 2020 is most crucial for automotive industry as entire industry is struggling for the last 16-18 months with no respite in sight. Automotive industry is caught between slowing economy, changing emission regulation to BS VI and enhanced hype of electric vehicles.The health of Indian auto industry is very important for Indian economic growth like in many other parts of the world. In India it contributes 7% of gross domestic product, 26% of industrial GDP, 50% of Read more..

India adds 30 million vehicles annually and has over 300 million vehicles crisscrossing the country. At the current growth rate, we are staring at doubling these numbers possibly to over 600 million by 2030. Not only are we the fastest growing economy in the world, but also the 3rd largest carbon-emitting country that accounts for 7 per cent of global carbon emissions. As a nation, we are facing a dichotomy of growth at the cost of climate change. By signing the Paris Agreement in 2015, India Read more..

India largely moves on two-wheelers, with almost one-third of households owning one. Whereas the car-owning households stands at around 11%. When we talk about Electric Vehicles, most of the governments thrust is on electric cars only. However, e-bikes are another rapidly emerging segment globally in the field of electricity powered vehicles. Electric bikes are an evolved version of the conventional bicycles, fitted with a smart electric motor to enable motorized pedaling along with an optional Read more..

The last few months have been most critical in terms of our plan to transition to an electrified future for mobility. The introduction of Faster Adoption and Manufacture of Hybrid and Electric Vehicle II (FAME) and proposed deadlines mandating faster adoption has created a sense of urgency.The conversations and interest in electric vehicles are not new. For more than a decade, several companies have been conducting intensive R&D in this space. However, recent government policies and increased Read more..

When people think of the car of the future they usually imagine something that drives (or even flies!) itself but theres much more to innovation in the automotive industry than just autonomy.According to Gartner, there will be more than 250 million connected vehicles on the streets by the end of 2020. Connected vehicle doesnt just mean self-driving it includes anything that enhances our life on the road by communicating with other devices.From anti-lock brakes to rear view mirrors, motorsport Read more..

A very big congratulations to India Inc for getting a surprise, yet long-awaited gift from the Union Finance Minister Nirmala Sitharaman in the form of the corporate tax cut.Now the corporate tax has come down to 25.1 per cent (22 per cent plus 10 per cent surcharge and 4 per cent cess) along with complete exemption from minimum alternate tax (MAT), but with a condition.The reduced corporate tax rate will be applicable only if no exemptions or incentives are availed, for example, SEZ deduction, Read more..

Our FM said today that "Automobile industry is now affected by BS6 and the mindsets of millennial, who now prefer to have Ola or Uber rather than committing to buying an automobile."For argument sake, we may agree that it may have an impact on passenger vehicles segment and largely in cities but It begs the question then, why commercial vehicles, tractors, and two-wheeler are on a downtrend? Even the earthmoving and construction equipment demand has slowed down in the last few months. A deep Read more..

The auto industrys recent meeting with Union Finance Minister Nirmala Sitharaman has certainly resulted in some hope. The representatives who were part of the delegation, are hopeful that she might take some decision to revive the auto industry soon. The minister is expected to continue consultation with the industry till Sunday. The sector considered the centre of economic activity is going through the worst ever dip. Finance Ministers engagement on the slowdown comes after some leaders Read more..

Governments recent initiatives including reduction of GST on electric vehicles from 12% to five per cent has re-affirmed the intent to combat poor air quality and curb the excessive dependence on oil import The focused efforts and policy measures such as FAME India, Bharat Stage VI and CAFE normsare expected to give the much-needed fillip for the eMobility revolution and help the country to achieve significant Electrification of Fleet by 2030. These policy measures by the Government and the Read more..

The last few months have not fared well for the Indian automotive industry. The sector is amidst one of the most challenging times ever witnessed with a drastic plunge in domestic consumption. Automobile sales across categories have touched the nadir in eight years since 2011, plummeting by 17.07%. This in turn has had a cascading negative impact on OEMs, auto ancillary and metal sectors. GDP too is largely affected since all these sectors are vital contributors to national figures. Ahead of Read more..

The automobile sector is severe need of support from the Government in this years budget as auto sales are at an 18 year low. The slowdown in automobile OEMs is having a cascading effect on auto ancillary as well as the metal industry which in turn affecting the overall GDP growth story as it contributes over 7% in the total GDP.With the Government looking to push green initiatives such as Electric Vehicles, adoption of lower emission norms, etc. the automobile sector would expect that the Read more..

The ambitious Bharat stage emission standards were introduced by theGovernment of India in order to regulate the output of air pollutants from internal combustion engines with norms that are similar to the Euro IV and Euro VI. Introduced in 2000, the Central Pollution Control Board under the Ministry of Environment & Forests and climate change sets the timelines and standards for its implementation. As of now, BS VI will be implemented from April 1, 2020, that is 3 years after BS IV was Read more..

Data is quickly becoming the new fuel for the automotive industry. Forward looking automakers envision a future in which they have the ability to combine and analyze various pieces of information from different vehicle systems to reveal things like driving habits, frequently visited locations, tastes in music and numerous other insights into consumer behavior.For the consumer on the other hand, assuming they are open to it, there are a plethora of benefits that can come from providing Read more..

There was a time when specifications of an automobile stated the fuel type, power output, type of gearbox, safety features, etc. Today it reads like that of an advanced computer packed with numerous programs, incompatibilities, connectivity and other features not even thought of, a few years ago. ACES (Autonomous, Connected, Electrified, Shared mobility) is unfolding at an unprecedented pace. Transformation in the physics of producing and transferring power to the wheel is underway. There are Read more..

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In order to exhibit the model stretches of national highways as per norms, NHAI plans to develop 57 stretches of NH (1,735 kms) across the length and breadth of the country near each state capital, the NHAI official said. These model stretches will serve as a platform to instruct the highway engineers.